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Oreninc Index Falls to Reality 

The Oreninc Index returned to reality for the week ending February 19, 2015. Total dollars announced dropped to $38.2m, a two-week low. Two brokered and bought deal financings were announced for $21m, six- and two-week low respectively.

Deal-making for the week continued, albeit on a lower level, with Timmins Gold Corp.’s (TSX:TMM) acquisition of Newstrike Capital Inc. (TSX-V:NES) in an all-stock deal worth $140m. The deal will create a Mexican-focused gold producer, with Timmins shareholders owning around 63% of the company post-deal and Newstrike owning the remaining 37%. Gold prices for the week crashed below $1,200 for the first time since the beginning of the year.

It’s never great to see such depressed numbers after a week as strong as last, though the fact that it came in a holiday-shortened week makes it easier to swallow. We’ll see if the PDAC has any lifting effect as companies try to build excitement leading into the annual meeting of the industry.

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Oreninc Index Reaches Highest Level Since October

The Oreninc Index reached its highest level since October for the week ending February 12, 2015. Total dollars announced exploded to $221.6m, a 17-week high. Six brokered deals were announced for $165.7m, a 48-week high; five bought deals were announced for $156.6m, a 49-week high.

Deal-making increased for the week with Tahoe Resources Inc (NYSE:TAHO) and Rio Alto Mining Ltd.’s (TSX:RIO) announcement that they will merge to form a new precious metals major. The deal will leave Tahoe and Rio shareholders with roughly 65% and 35% of the company, respectively. Gold prices slid to below $1,220 for the first time since early January on news that the US employment climate continues to improve.

It’s nice to finally see a standout week after so much stagnation in what should be the height of the money-raising season. Hopefully the Index can stay at this level, or somewhere near it, as the industry looks ahead to the PDAC in the coming weeks. 

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Oreninc Index Levels Out

The Oreninc Index continued its streak of leveled out consistency for the week ending February 5, 2015. Total dollars announced dropped to $33.9m, a four-week low. Two brokered financings were announced for $21.7m, a four-week low; one bought deal was announced for $10m, also a four-week low.

No major deals were announced, making it the second week in a row of quiet deal-making in the space. Gold had another sub-par week, continuing its roller coaster of a 2015 to below $1,270 an ounce, though it still remains well above November’s YTD low. Iron ore also continued its downward trend, hitting a five-and-a-half-year low in its seemingly never-ending fall. In brighter news, copper prices rose marginally to a two-week high.

While hovering around this suppressed--if not relatively respectable--level is not an ideal way to start the year, it’s a positive sign that some companies are still raising cash via brokered and bought deals. 

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